Mortgage broker fee query - please help

Big_McCal

Hello

I am currently working through an application with a Mortgage broker. My query is that his key facts document "about our services" has ticked that "a fee of up to £1995...... will be payable", rather than "No Fee".

In all my initial conversations I was told that no fee was payable. I questioned him about this and was told that no fee was payable and that this was ticked to cover the company in case of excessive costs, e.g if credit checks are failed.

Is the standard practice? I was expecting to see the no box ticked. Would he be able to send us a big invoice after verbally assuring me that no fee will be charged?

Thanks

homer_j_3

I would walk away - it don't cost £1995 for this.

To my understanding - the correct practice would be to issue a Key Facts document saying that the advice is free on the basis that the adviser is presuming - no credit problems etc.

An explanation should then follow that if the information provided is fundamentally incorrect with your credit file or income etc, then he will reissue another keyfacts to reflect the fee that they wish to charge for the difficulty of placing your case.

To me, this kind of practice is the shoddy practice that gives people like me a bad name!!!

dunstonh

Wow. £1995 for processing a mortgage. Thats more than I get paid on a more advanced transaction of building a £200,000 portfolio. £1995 is a rip off for a mortgage.

Is the standard practice?

No. You cannot say no fees but have the fee box ticked. Its a lie.

The adviser is allowed to factor in a cost if you dont proceed but there is a section later on which shows what happens with regards to fees if you dont proceed and other events. i.e. if you proceed, is the fee waived. If you dont proceed, then you will have to pay X amount of the fee. To charge a £1995 fee if you proceed is a rip off. To charge it if you dont is even worse.

Would he be able to send us a big invoice after verbally assuring me that no fee will be charged?

If its not on paper, it didnt happen. The key facts about our services is the main document on this and you should rely on what that says and not what the individual says. First impressions here are the fee is massive and the key facts document isnt very clear. Whats it going to be like when he gets on to explaining the important bit about the mortgage?

Big_McCal

Thanks Homer

This whole process hasn't felt right for a bit. The broker began the application two weeks ago. Do you know if we can take over the application process and dump the broker? Or would we have to start all over again?

I have an application reference from the lender, can I call them and explain?

Thanks

homer_j_3

who is it with?

Big_McCal

Bank of Ireland

homer_j_3

has valuation taken place?

Big_McCal

This is a Scottish property. Valuation has taken place. I had to commission a valuation survey as soon as my bid was accepted and before I applied for the mortgage. This is being forwarded to BoI.

homer_j_3

ahh i see - of course - didn't put the aberdeen link to scottish law - must be tired lol.

without seeing all paperwork - it would be wrong for me to say what todo either way. find a fee free broker and show them the paperwork. Hopefully a recommendation will come on here for a good broker.

herbiesjp

Just to back up what has been said

The NO FEE box should have been ticked if that is what was said to you - this is so disheartening.

If you are fee free and agree that with the client at the outset then that is the box that is ticked. If the advise wants to cover costs, then they would include an admin fee.

However to leave it open up to £1995 is just scandalous

As dunstonh says - your course of action will be dictated by what is said in the rest of the document about fees

HTH